This page deals with the increasing population, causes  and it’s economics effects, often seen in the gce , gcse and gce A level.

Definition : An increasing population would have a greater proportion of their population consisting of people in the younger age group.

 

Causes of an increasing population

 

Rise in the birth rate

If the birth rate rises it increases the proportion of people in the younger age group and this leads to an increasing population.

Rise in the death rate among the old people

A rise in the death of old people would reduce the proportion of adults in the population. This leads to a situation where there is a  larger proportion of young people and small proportion of old people in the population.

Immigration

This refers to the movement of people into a country. Usually it is people in the younger age group who move from their country to other countries. This movement causes the proportion of young people to increase in the country where they have moved into.

 

Economic effects of increasing population

 

An increasing population would have the following economic effects.

  1) Increase demand for goods and services needed by youths.

Demand for goods and services needed by children because youths form a greater proportion of the population. Such goods and services include sweet, toys medical care and educational facilities.

 2) Increase production of goods and services need by youths

The increase demand for goods needed by children would have the effect of encouraging entrepreneur to increase needed by the youths to meet the available

 

3) Structural unemployment

Since demand for goods and services not needed by children will  fall, there would be        decline in industries which are producing goods not needed by children. This will lead to structural unemployment since some workers will have to be laid off in this declining industries.

4) Potential labour force

The effect of a large percentage of young people in the population are that there will be a larger labour force and increase production in the feature because very soon this young people  could be in the working population.

5) Increase depending ratio

An increased proportion of young people below the working age, in the population implies that those in the working age group will have a greater responsibility of catering for a large proportion of the people who do not add to production.

6) Increase government expenditure

Government expenditure of goods and services need by the youths would increase, expenditure on items like recreational facilities, health facilities, etc are like to rise.

 

7)  Loan services and capital formation

Since the dependence on the working population is great, there would be less service and low capital formation.